Tlalnepantla, Mexico, December 9, 2010
—IFC, a member of the World Bank Group, announced today the signing of a public-private partnership between the Social Security Institute of the State of Mexico and privately held developer Marhnos to finance, build, equip, and maintain a new hospital in Tlalnepantla, Mexico under a 25-year contract structured by IFC.
The new hospital will replace an outdated facility and provide patients with improved services, while creating a business model for high-quality health care in the state.
Under an innovative partnership, the institute, or ISSEMyM, will be responsible for the hospital’s medical staff and pharmaceuticals, while Marhnos will be responsible for construction, facility management and non-clinical services. Marhnos will also provide all medical equipment and consumables during the lifetime of the contract. By introducing private sector best practices, the partnership will deliver enhanced medical services for 6,000 inpatients and 20,000 outpatients annually, while reducing the overall cost of the hospital by a third.
Incorporating a large number of services delivered by the private partner, this public-private partnership is the most advanced of its kind in Mexico’s health sector. It was well received by the market, attracting competitive bids from four consortiums representing 15 companies.
The project, just outside Mexico City, also will benefit from an innovative financial structure. Mexican pension funds will contribute to the equity of the project through an equity-structured note that will be issued by Marhnos.
Marhnos is expected to invest $60 million in the construction and equipment during a 12-month period.
“Improving health services to our population and maintaining a healthy financial position are top priorities for ISSEMyM,” said Dr. Osvaldo Santin, Director of the Institute. “IFC’s knowledge and global experience helped us to achieve both.”
Roberto Albisetti
,
IFC
Country Manager for Mexico and Central America, said, “Together, the Mexican State, Marhnos, and IFC are helping to make high-quality health care available to the ISSEMyM’s insured population, while launching a new generation of health public-private partnerships in Mexico.”
IFC received donor support from the Catalonia IFC Trust Fund. IFC served as the financial advisor to ISSEMyM with the consulting firm Currie & Brown providing technical advice and Jáuregui, Navarrete y Nader, S.C. providing legal advice.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
